Daytraders who got in at $6.00 are now getting out at $3.75. Smart, yeah? Who cares about the "beating" unless you need the money right now. This company made $.19 in the trailing 12 months (per its SEC filings). We're at under a trailing P/E of 20x on an internet company that is dropping its delivery costs to zero by allowing downloads over the web (I hope that they will drop their charges for delivery also...) "RomTech, which is profitable, is comfortable with earnings expectations of 25 cents a share in the year that ends June 30." So if we take the company's forecasts and use two past & two future quarters (including the one ending this month), we get a P/E of 15. What do you suppose we get if we use this year's (1999's) earnings. I would suggest that it is too soon to tell, but probably a P/E of 10 or so. Egames's game selection has more than doubled in 3 months. Market cap is very reasonable at $35 MM (9.5 MM shares).
Company is buying back shares: "On October 26, 1998, the Company's
Board of Directors authorized the Company to purchase up to $1,000,000 of itsshares of Common Stock in the Nasdaq SmallCap Market." From Feb. 1999 10Q. Selling below $3.75 is foolish, but day traders do it because of emotions (a bad way to invest). We may go even lower. But is it a good value at these prices? Yes, IMO. |
